All of the following statements about 403(b) plans are true EXCEPT A)

All of the following statements about 403(b) plans are true EXCEPT

A) Contributions to a 403(b) reduce an employee’s taxable income.
B) 403(b) plans are designed for employees of public school systems and tax-exempt organizations.
C) The law limits the amount of income that an employee can elect to defer under a 403(b) plan.
D) Matching employer contributions are not permitted under a 403(b) plan.

ANSWER

Answer: D